Know-How Exchange : Branding

A "low-price" image will definitely hurt your business among luxury/high-end customers. The price you charge is a direct reflection of what you think the product is worth.

You are better off positioning the company on a "cigars for everyone" platform, and then have a special "VIP room" for the higher-end cigars (at competitive prices for that segment).

Don't flaunt the low prices. Instead promote the benefit of cigars and the fact that you have the perfect cigar for every aficionado. Your customers will very quickly discover that your prices are lower than those of others.

Never sell based on price. Ever.

There will always be someone who comes along who will undercut you, then you drop your prices to match, and before you know what's what, you are broke.

If you try to serve everyone, no one becomes your ideal customer.

So, by all means re-pitch and retool to serve multiple markets, but do so STRATEGICALLY.

To the lower price buyer, you offer THIS brand, the one that suits their buying habits.

To the high level buyer, you offer THAT brand, the one that suits THEIR buying habits,

But you do not, ever, try to be all things to all people. Doing so will ruin you.

One other point: PRICE has nothing to do with branding. VALUE, on the other hand? That's a whole other element.

What is your competitions' positioning?

Pricing is not our only advantage, but its our main one because the market is quite price sensitive, even though ultimately its a luxury product. I could be wrong. It could be that there is a whole segment of customers out there who aren't price sensitive whatsoever, but we haven't reached them.

We also have the largest range of products. We have the most prominent website and social media presence too and offer a unique one hour delivery service (think Amazon).

The idea is that anyone who smokes cigars would be catered for- a one stop shop if you will.

Competitors positioning:
1. Purely online- low prices, charismatic owner, cheap and aggressive pricing.
2. A bit tacky, relatively low prices, popular brands. Focus on pipe tobacco.
3. Luxurious, elitist. High prices.
4. Large range, reliable, membership orientated.
5. Slick, expensive.

Take the COSTCO model...charge a yearly fee, charge low prices...make your profits of fees

I think you're right MonMark Group. Indeed price is important and everyone likes a special deal. The market has changed and people still enjoy a bargain. Whilst I appreciate the concern of spreading too thin in trying to reach all the market, at the same time we must remember that cigars are a niche product.

cookmarketing@gmail.com also has a great idea which many use- the membership model. What I like about that is that it encourages loyalty within my market which is notoriously disloyal.

My gut feeling now is to go with a fairly upmarket brand, introduce a membership scheme and also maintain low prices.

I'm not a branding expert, but I'm sure the different groups of customers have different needs. In my particular case, I don't smoke cigars, but I might want to buy one for someone as a gift. Let's imagine that I want to buy a cigar for Someone who is a big fan of cigars. I would have two major concerns, neither of which have anything to do with price. First of all, I would want to be sure that the cigar was shipped in some sort of a way so that it was not dried out and horrible when it was received. And secondly, I would want to buy the person a type of cigar that they enjoy. And so maybe you could develop and stress some sort of way to deliver cigars in high-quality condition, and give cigar smokers a way to "register" their preferences, similar to the way a bride annd groom register gift preferences.

So I might say to a friend, "hey, I'd like to buy you a cigar, but I don't know what you like…" And then refer them to your website, not that they would pay a fee to sign up, but rather so they could register their preferences, and maybe buy some direct themselves.

Just an idea. Good luck.